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tv   MONEY With Melissa Francis  FOX Business  December 11, 2012 5:00pm-6:00pm EST

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[shouting]. melissa: union anger explodes in michigan. the state passes right-to-work laws, dealing a huge punch to union power. but they are not going down without a fight. the economic fault lines could spread across the country. also, "money" tonight, a crash for gas prices.
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they are tumbling across the u.s. it's an early christmas gift for drivers but we'll tell you if the relief will last through the new year. pepsi is crazy in love with beyonce. the music icon inks a $50 million deal to pitch its products. can she really make you stop drinking coke though? i say pepsi just got hosed. but a top marketing expert is here to disagree with me. even when they say it's not it is always about money melissa: firss, let's look at the day's market headlines of the leave it to congress to suck the air out of a good thing. stocks soared in early trading on hopes of a deal on the fiscal cliff. but a parade of speeches by congressional leaders this afternoon dump ad whole lot of water on the rally. stocks pared back from session highs. dow closed down 78 points.
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even dollar stores are having trouble making money today. dollar general shares got hammered. they warned of sluggish growth ahead and margins that would likely remain flat. urban outfitters is mailing holiday catalogs filled with f-bombs. did you get one of these. retailer is seeing quote, high single-digit expansion in same-store sales this quarter. shares rose more than 4% on the news. it is our top story tonight. un-busters cracking the bedrock of labor unions in michigan even though fiery protests rocked the state capitol all day today they were out there. its house of representatives has passed two right to work bills making it possible for workers to volunteer to belong to a union and pay dues. michigan governor rick snyder could sign bills into law any minute now. so is this the end for unions? joining me now is the the director of labor policy at mack kin gnaw center, who has been at the protests
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site all day. we have mark brenner, director of labor notes. vinnie, what do you make of what went on today? >> melissa, thanks for having me on. it is absolutely historic. you're talking about the state with the 52-week highest percentage of union members in the country. the birthplace of the uaw. for what has been long considered a union strong hold, giving workers the freedom to choose. freedom to choose whether or not to pay a union and still keep their jobs. this will have national ramification. this is very historic day both for michigan at country. melissa: mark, is there aniable positive way to spin this for the union side? >> of course not. this is union-busting move by lame duck legislature. this is puppet marching to the beat of puppet tease, dick devs of amway who want to hurt unions. melissa: did they succeed? is there a way to battle
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back. >> of course we have ability to organize on the job. that is what we'll hear doing. i love vinnie talking about freedom, freedom of association which is violated every half hour when someone is getting fired for organizing union. i don't see mackinaw fighting for that. this is corporate agenda. this one piece of it. seeing in states like indiana and wisconsin. they will try to spread it but we'll keep fighting. >> vinnie, it is one piece but it is a huge piece. this is michigan where 17.5% of the workforce is unionized. if workers aren't forced to pay dues, a lot of them, i mean whether they believe in unions or not are not going to do it because they just simply can't afford it. so, you know, this is a big financial blow to unions no matter how you slice it. >> actually going back to the previous point, this is actually a very bright spot for unions around the country and here in michigan. it means that now unions
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will be held accountable and they will have to prove their worth. they well have to represent their workers better. have to put workers there is in front of the special interests. if those unions are doing a good job and they're putting workers first, then the workers will pay them. it is not, like every other non-profit or trade association or group in the country. the nra for instance, they represent all gun owners and second amendment believers but not everyone has to pay the nra. nra is still in existence because they do a good job. melissa: mark, what about that? does that mean union workers to prove their worth? >> i think unions fight for workers every day. there is plenty more we can be doing. i've been a vocal critic my entire career in the labor movement people who lay back, don't do enough. making too much in terms of officers salaries or cutting deals with bosses. i certainly believe we need to do better. this is not in any way something to celebrate. this is further tilting playing field in favor of corporations, taking rights away from working people. i disagree with vinnie.
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nra you can join it or not tell it. your boss isn't telling you in who uncertain terms he prefer if you not and your job might be in jeopardy if you do. melissa: how do you know that is what is going to go on here? unions are well-established. in many -- >> it is multibillion-dollar inindustry, come on, you know this. melissa: they're are already working the shops. they're proving their worth. maybe according to what you're saying they might not have a problem as a result of this legislation. maybe union membership will not drop if they're so valuable? >> i think they're incredibly valuable. melissa: hang on. let mark answer, we'll go back to you, vinnie. hang on one second. >> if it were level playing field. if we weren't in environment of like one-sided class war against workers i absolutely agree with you. people would join and pay wouldn't be a problem. we're, in a undeclared class war here. now become official. it has been declared know now by the politicians who serve billionaires and bankers agenda. that is what we're seeing here. melissa: vinnie, go ahead
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and respond. >> okay. well let's talk about what right to work is, one more time. right to work simply gives workers the freedom to choose. it doesn't affect collective bargaining in any other way except for taking away the union's ability to get a worker fired for not paying them. unions in right to work states can collectively bargain wages hours, working conditions and benefits. it doesn't affect collective bargain except for the union's ability to get the workers fired. that's all. melissa: thanks for bringing both sides into the debate. we appreciate your time. we have to go because we have breaking news right now. spokesman for house speaker john boehner has announced that the house gop has sent a counteroffer on the fiscal cliff deal to president obama. let's go right to rich edson for more on this breaking story. rich? >> aides say this is an exchange of partial proposals to try to get the ball moving a little bit after some type of impasse over the last few days. this is basically an offer that the house republicans say they have just sent to the white house but there
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are still major difference ares here. this is from a boehner spokesperson saying the longer the white house slow-walks this process the closer our economy gets to the fiscal cliff. there is major business lobbyist out there telling us right now the discussions are focusing on process. how do to it. not necessarily substance. so there are no details on what these offers exactly state. they're not even really getting out on capitol hill right now. so we're still watching it to maintain. again you've got the exchange of partial offers at least coming out of the white house and from house republicans but they still remain fairly far apart. melissa: rich, you have been right in the heart of this story from the beginning. to you, does this feel like progress? what's your opinion? >> anything at this point feels like progress but they are still stuck on the major problems that have dogged them for the last couple of years basically, not just the last couple of weeks. problems with spending cuts. problems with entitlements for democrats.
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problems with tax revenue for republicans on the other side. there's no movement it seems towards that right now. but again, details are very, very thin on this one. melissa: it's something. rich edson, thanks so much. >> sure. melissa: turning now to kind of a crash drivers like, a gas crash. prices have been steadily dropping. the average price of a regular gallon is little more than $3.30. it is expected to keep going down. senior petroleum analyst patrick dehaan is joining me. welcome back to the show. what is causing this decline? >> a lot of it is just seasonal. we see it every year. gas prices go down into cooler months. we're using less gasoline we're filling up with. you're not dumping a boat in the lake in middle of winter. think of that across 50 states, minus florida where you can do that. this happens every year gas prices go down into thanksgiving and christmas. melissa: it does but there are a lot of competing factors out there that could
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make this different than others. the past 12 months has been different than others. for example we had superstorm sandy that caused a disruption here in the northeast. for a while that propped up prices. that's gone. i worry if prices are declining is it because the economy is slowing? >> no, not necessarily. that certainly could be a factor. think back to 2008 when gas prices actually did crash and went under $2 a gallon. that would be a concerning sign if gas prices fell off a cliff like we're doing here with the economy if nothing is figured out. this is not a gas price crash. this is something normal this time of year. gas prices haven't declined so significantly. we're still talking about prices well into the $3 a gallon range across much of country. in fact still we could be looking new all-time record high for christmas for the nationnl average. melissa: really? >> something off everybody's radar. we're talking about gas prices going down but we
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still have room to fall. today prices are still four cents higher than last year. we could talk about a national average that has never been higher on christmas. melissa: what do you expect to see between now and chris mass day? some say could decline by 10 or 15 cents, what do you think?. >> i'm not optimistic about 15 cents. we're two weeks away from christmas. it doesn't move that fast unless something happen. anywhere from nothing to another 7 cent decline. then prices will start heading up as we enter into the new year. melissa: do you watch the opec meeting at all? there is a lot more tension going on at this meeting than we've seen for a long time. iran and saudi arabia struggling for control of the cartel right now. you had venezuela come out at last meeting to declare they have the most oil on the map. more infighting than usual. does this concern you? are you focused on it at all? >> you know opec is becoming more exciting. melissa: it is. >> power grab for what
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little power opec really has nowadays. we're coming off stories u.s. domestic production is through the roof. our friends in canada still sending us oil. opec is trying to stay relevant. right now they're struggling with that. who wants to produce as much oil? the saudies are always on top. venezuela is always very vocal. at the end of the day opec is becoming quieter and less relevant. melissa: it is but still 40% of the world's oil. patrick, thanks for coming on. you're always fantastic. >> thanks. melissa: time to check the fuel gauge. natural gas line exploded in west virgina. the massive inferno engulfed five homes. shut down interstate 77. no injureries luckily have not been reported yet. a cause for the blast has not been determined. opec's oil out put fell in november. platts said the production% slipped by 91,000 a barrels a day. 31.17 million. the reduction largely do to
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232,000 barrels a day cut back by saudi arabia. opec's output decline helped oil futures snap a five-day losing streak. crude rose 20 three cents. natural gas futures fell for the fourth straight session. rising stockpiles and warmer weather across the u.s. helped the decline. >> student dent is the next crisis. why a trillion dollars in outstanding loans could be a ticking time bomb. pepsi is "dangerously in love" with beyonce. they signed a $50 million deal with the icon. i think it is worth a bottle of soda. one marketing guru says i'm dead wrong. he is here to disagree with me. more "money" coming up. ♪ . and we can save you 10% on ground shipping over the ups store.
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♪ . melissa: here we go again. another subprime crisis on the brink. this time though it is student loans. there is currently almost a trillion dollars in student loan debt in the u.s. that is causing growing alarm from many experts.
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joining me james freeman, assistant editor at "the wall street journal" thanks so much for coming on. >> hi, melissa. melissa: this is really starting to get people's attention as you see student loin debt rise. the taxpayer for the most part is on the hook. you see the unemployment rate rise. makes you think a lot of money is being loaned at alarming rates that frankly will not get paid back. >> i hope it gets a lot more attention. it got a lot more attention during the campaign. the president is you at thatting about how they will subsidize the rates even more and make it easier for kids to borrow tons of money given the job market they will have trouble paying back. melissa: being a reporter it has same feel of subprime crisis. covering it nobody knew it was and it got louder and louder and all of sudden it was a big problem. what are the similarities and what are differences? >> similarity the loans are handed out without reference to your ability to pay it. that would be the big comparison to subprime. you know also, obviously
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it's a government-backed market. this, trillion dollars that people, this is now, essentially entirely government market. you saw the government housing policies, loose monetary policies gave us subprime. you're seeing a credit mania created in both cases by government policies saying housing is good at any cost. education, this thing called college. wherever you studied, whatever you went, whatever you did there at any price is good and that is dangerous. melissa: money is available anyone feels like they can go out and get a loan. they're really worried about choosing a college based on price. choose it based on everything else. that is nice in a world where college is free but it's not. >> you're not helping students if you give everybody the subsidies. the colleges over the years are good at pocketing that, raising tuition prices. this is one market where it has grown, the prices have grown faster than health care. not just faster than inflation but runaway costs. >> you really believe that is true? i say that to people all the
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time. all it is doing is driving up price of college. people can afford it. market will bear it. colleges know the money is out there. students can bear it f we clam down on student loan debt would fewer people go to college because money wasn't available or would colleges lower their prices? they wouldn't do that? >> at least you see restraint on increases. look at college board data. the consistency with which colleges increased prices regardless what is going on in the rest of the economy you have to say this is not a normal market. it is heavily distorted and loans and pell grants, remember have also doubled during the obama years. so it's a lot of government money. a lot of incentive for people to spend it on college. melissa: one thing makes it different there is no asset to repossess. with the mortgage crisis when somebody defaults, okay you go ahead and reprocess the house. that creates problems and neighboring houses and very sticky market.
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in this case there isn't really an asset that then becomes worthless but at the same time there is nothing to repossess. for the taxpayer who is on the hook, just more money right? >> for people who worry about the taxpayer, traditional response is yeah the kids can't discharge this debt in bankruptcy. couple things. first of all, i think the last few years have taught us saying they will never bail out that market is not the good view for the taxpayer. there is the issue if we end up hounding the kid for years and take forever to repay, that is not a win for anybody. obviously not a good situation for the kid who borrowed a lot of money and can't get a job to pay the bills but the tax ier will not do well if you have lots of defaults and defaults are rising. melissa: we have to have a way people not to borrow so much in the first place. people are not looking at that. thanks for coming on. you're fantastic. >> good to be here. melissa: coming up on "money", pepsi is not putting a ring on it but 50
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million dollars will probably do. the star will sign a huge marketing deal. i think it will fizzle but a top marketing expert is here to disagree with me. plus chaos mounts in egypt's streets as president morsi's government could call fall is this the right time for the u.s. to send over 20 f-16 fighter jets? this is about to happen? i bet you didn't know about this. the astonishing details of this one coming up. do you ever have too much money or too many planes? ♪ .
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♪ . melissa: maybe she is worth it after all. in case you hadn't heard, beyonce is soon coming to a pepsi can near you.
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the pop diva just signed a $50 million deal with the soda giant. you heard me. 50, million, dollars. the figure is astounding. but will collaborating with a powerhouse like beyonce help pepsi's bottom line enough to justify the price tag? i don't think so. if you don't like the taste of pepsi you will still drink coat whether fabulous beyonce is there or not. here to disagree with me is marketing guru bruce mcallister. >> hi, melissa, thank you. melissa: at the end of the day you either drink coke or pepsi. no one loves beyonce more than i do. i've been to the concert. i love jay-z. i'm 100% on board. she is the best. i'm still drinking coke. >> yeah. well i don't drink either one but take it for someone who hasn't been convinced yet. think about what they sell? they sell sugar water. did a fuel thing a few minutes ago. they sell sugar water that costs more than the fuel. they have to do something to
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differentiate and get people excited about it. beyonce is perfect. everybody loves her. she crossed over into rock, pop, r&b and doons. she is sweet and bubbly, just like what you get in the can. melissa: part of it has to do with authenticity. i don't believe she drinks pepsi and who cares. you look at her. i think she drinks water. i don't really see her downing a pepsi. and even if she does, she is not awesome because she drinks pepsi? >> i think this is last time we spoke about this. first of all you're not market. second of all, people do not --. melissa: i'm not market? i drink lots of soda. i drink lots of soda. what do you mean i'm not the market? i have a household. i have two kids. i'm the one at the grocery store. i'm exactly their market. i buy soda. it is all about me, baby. >> everything is all about you. melissa: well -- >> that is the key to marketing all about them. if we call pepsi who is the demographic i'm guessing it will not be you. it would be your kids.
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it would be people who love beyonce. they did a deal with nicky ma judge. -- nicky ma nauge. they're cover covering their bets. whether they will put pepsi on the can or a face on the can. they will make the product desirable. the you love her. you will adore her. you will go in the store. see the cuttout. you will buy it. melissa: i don't know about that. if they put her can on the can that would be pretty great. i would definitely stop and look at it. if you look at president pepsi's history. you remember nicky manaj. they had a deal with michael jackson. madonna, they paid $9 million. britney spears. they're not number one. they had a 3% sales decline. 7% decline in sales last quarter. they're behind. they're always number two. at least or even 3 after diet coke. and they have bet on music stars in the past and it hasn't worked. maybe should try something new, like a new product, new
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market, i don't know? >> they should do all of that. they should try something new. they need to try new ideas with new technology and new concept as and new creative. at the same time these sort of things work. you brought up something very interesting. you mentioned michael jackson. you mentioned some others. there are real fears about this. this is called the michael effect. get michael bolton he became irrelevant. michael vick, as spokesman. he goters a. and michael jackson died. melissa: beyonce can do no harm. she is perfect. but at the same time -- >> you get her us had too. you get some jay-z. melissa: i love jay-z. i'm going to see jay-z on new year's eve. $50 million. how did they come up with the number? why 50 million? >> i'm guessing that's what her agents demand. about all what they will pay. no way to value it really. you're not worth but you're worth 47. let's face it. based on how much sugar water they sell, it is a
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rounding error. amount of money they giver her is irrelevant. if they get bump in sales they will be the great geniuss. if it doesn't do anything everybody will say they are doing same old thing. i think you women be drinking it. melissa: hova came up with the 50 million number. thanks a lot. come back soon. >> it was a treat. melissa: not drinking pepsi no matter what. hear is the question of the day? do you think pepsi got the good deal in $50 million contract with beyonce? we want to hear what you think. like us on follow me on twitter at melissaafrancis. you had a lot of opinions. everybody loves beyonce. next on "money", egyptian president morsi's control appears to unraveling by the day. what is the u.s. prepared to do? give egypt 20 f-16 fighter jets? what? we'll explain that coming up
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next. the dallas cowboys consider impairment devices for players cars after jerry brown's drunk driving death. would it set a dangerous precedent for employer's control over workers lives elsewhere? piles of money coming up. ♪ .
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melissa: turning now to some
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stunning news in egypt. despite the bloodshed and chaos in the streets of cairo the u.s. is giving the egyptian government 20 f-16 fighter jets. the first four, which will be delivered in just six weeks. it is part of a billion dollar military aid package that was brokered with former egyptian president hosni mubarak back in 2010. but mubarak is gone and president mohammed morsi is clearly playing a different and dangerous game. given the current situation protesters are storming the palace. more than a dozen dead. hundreds are injured. why on earth are we handing over 20 advanced fighter jets to a regime we don't exactly trust? we have a money power panel, mideast experts to explain. mike barrett, diligent consulting firm. judy miller from the manhattan institute. a fox news contributor. michael rubin, a resident scholar at the american enterprise institute. mike barrett, let me start
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with you. why are we doing this. >> i have a hard time explaining this. i've been on the show before and talked about it. in general giving some money to the military is a good idea because they're somewhat moderating force in egypt. giving more training, weapons, small arms, ammunition is one thing. 20 f-16s puts you in entirely different category. i'm frankly surprised they will do this. melissa: judy, i thought this had something to do with the deal that president morsi brokered between hamas and israel. maybe this is pay back. this has been in the works for a long time. >> exactly. that's why, melissa, if they cancel this order it would send a hugely negative signal just at a time when the united states is kind of hoping that somehow the egyptian government manages to hold its together. so far they are their own worst enemy. they're doing everything they can to screw things up, but, we still hope, we hope that they are going to prevail at least, at least president obama does. because the alternative is
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more violence and chaos. melissa: michael, from the point of view of optics this is very tough sell at a point we know egypt is supplying weapons to hamas. was on the other side with our ally, israel. to then be giving fighter jets to egypt seems bizarre? >> it is absolutely bizarre and it's inexcusable. it goes beyond just egypt's links to hamas. egypt has been actively flirting with not only hezbollah but with the islamic republic of iran. we really need to ask ourselves do we really trust the egyptian regime not to share the technology with our worst enemies. melissa: mike, what do you think about that? >> i agree with michael 100%. there is any number of challenges the egyptian regime has. we hope there is less chaos. giving them, introducing more fire power into the equation will not help that. i think unfortunately like we saw after the shah fell in iran and we went to a to toe against u.s.-made weapons because we provided
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them under the shah in the following regime well go up against our our own weapons. melissa: judely, during the commeecial break, you said there is a meeting with the defense ministry. what do we know about that? what will happen? >> this happened late in the day. the defense minister is trying to acts as a mediator between president morsi and the opposition groups at loggerheads in the streets right now. he summoned, he called a meeting. he says it is not political. it is an effort to cool things down, calm things down. president morsi did know about this meeting in advance. he was stunned by his own defense minister. i think it's a mistake right now to view the egyptian defense people as hostile or, acting contrary to their own country's interests. if egypt falls apart, everything falls a i part. -- apart. they don't want that. melissa: mike barrett, this is great point. in some sense wee don't know who we're giving the planes
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to. >> i used to live in turkey. i love it as a country. we see islamist oriented government has taken over the reins in terms of military. they put the senior military officers on trial. as a result they now exert a lot more political influence over this. while i agree with judy on the point the egyptian military is the not problem. what i'm worried who will give orders to the egyptian military in a year, two years, three years. melissa: what is the best way to play that? we all agree there is a lot of uncertainty in the situation. it is incredibly volatile. everyone in charge or in power over there may or may not be our friends. but at the same time, withdrawing everything brings its own peril. michael rubin, let me start with you. what do you think is the best way to respond to maintain influence but, you know, not turn over weapons to people who will use them against us or our allies? >> first of all, we have to underrtand that egypt shouldn't be too-big-to-fail and that american weaponry and american taxpayers
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assistance shouldn't be entitlement to fundamentally increasingly ostile reg emgood. that said, i think we should slow roll it. i'm less sanguine than judy about the egyptian military. most americans know our generals as warfighters. most egyptians don't really know their generals for their heroics in the battlefield. the egyptians never won a war. they know their generals as businessmen first and foremost. what i see the egyptian military doing right now seeing which side, either mohammed morsi or people on the street will cut them a better deal because i'm not so sure that the egyptian's military interest is anything other than their bank account. melissa: judy, what is the best play here? >> i understand what michael is saying and i agree to a certain extent. we have people already in the streets killing one another in the world's largest arab country with 80 million people. we need to play this card out. i think what the obama administration could not do, they should stop falling all
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over president morsi and praising him for little things like the cease-fire in the israeli-gaza conflict. i mean you can be supportive without being slavishly pro-president morsi. right now a great deal is at stake and the obama administration ought to exercise a little more caution, but yes, i hate to say it, keep those planes going. melissa: mike barrett, last word to you, what is your take? last word from here. >> i agree with the slow roll approach. i don't want to see the economy collapse. i don't want to get into sanctions and cause people heart wake. i don't want to prop up the regime. i hope in democratic regime, have another election, get a constitutional crisis and get rid of these guys. this is not in the longs interest for theirs or ours for the muslim brotherhood to be strength inched. melissa: thanks for your time. >> thank you. melissa: in the wake of jerry brown's drunk driving crash could be a game-changer for the dallas cowboy players. does the plan to install
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impairment device in their cars cross the line how much they can control their employees lives. ♪ . can i help you?
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melissa: we have more breaking news on the fiscal cliff negotiations now. a senior white house aide confirms the obama administration is offering $1.4 trillion in revenue. you remember the previous offer by the white house was 1.6 trillion in revenue. so a little decline there but, no talk of spending right? we'll bring you more details as we have them. the tragic death of dallas cowboys player is sparking debate how much control employers can imposed over their workers. over the weekend krou boys linebacker jerry brown was killed in a drunk driving accident with fellow teammate josh brent at the wheel. the cowboys are considering installing a device called safe-key in every player's car. it prevents cars from driving if the driver doesn't pass a visual hand-eye coordination test. the cowboys won't be the first organization to have rules. here at "money" we told you about it.
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ri health which fired 150 workers for not getting flu shots. the question is, are these kinds of rules fair to employees and are they even legal? here to figure this out is attorney nicole davord. thanks for coming on. >> sure. thanks for having me. melissa: let's start with the ig question, is it legal? they're not on company time. it's over the weekend. it is a their own car that they own. their own life. can they do it? >> well, it really depends on the company's contract with the employee but as a general rule, assuming there is no contract although we know in this circumstance there obviously is contract, but as a general rule this is legal. and certainly other conditions which might be written into a contract we can't possibly guess at, in employment at will state like texas this would be entirely legal thing for an employer to do. if the employee refused to comply, they could simply fire the employee. melissa: how far can employers go though? we look at this case in dallas and, you know, it is coming in on the heels of a
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tragic accident. you can see the logic for it. you go to, maybe the other extreme with the other case we were talking about with the flu shots where employees really felt it infringe on their rights. how far can an employer go? can they, you know, fire you if you don't get your haircut they want? how much of your life can they possibly control? can they control what you do at home? >> well, it is definitely a slippery slope. unquestionably causes people to hesitate and ask how far can my employer to go to do things off the clock? in reality in most of the states in the united states employers can do just about whatever they want, assuming they're not infringing on a person's constitutional rights. so, in other words as long as they're not interfering with a thing like a person's religion, gender, things of that nature, then the employer can say, hey, look, we'll hire you as long as you do these things and we will not keep you employed if you do other things.
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melissa: that is the line. if it is in the constitution and you want to fight it has to be violating the constitution otherwise you don't have a prayer? >> well, as a general rule. many states have rules which add certain things that employers can't fire you for doing. like, for example, if you go to jury service, then you generally can't be fired, things like that. but it has to be legislated in. things maybe just uncomfortable or sort of things that the legislature hasn't contemplated are not in violation of the constitution the employer typically will be allowed to do. in other words they can fire you because they don't like you in an employment at will state as long as the reason they don't like you isn't something like race. melissa: at the end of the day if it is something they're requiring you to do they're not requiring to work there. so you could always quit rather than comply with doing what they are telling to you do? >> as a general rule that's right. there are certain states and certain contracts and unions can require there are additional things that have
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to take place before employee can be terminated. a contract can add things that have to happen before an employee can be terminated. but without a contract or without certain things being set outset out in rules in a contract, an employer has a lot of freedom. melissa: speaking of all that, thanks so much for joining us. we have to go, there are breaking news from michigan. governor rick snyder has signed the two controversial right to work bills into law, banning mandatory union membership. this makes michigan the 24th right-to-work state in the country. speaking of what happens at work. all right. so what happens when you fill up your gas tank with the stuff that keeps 747s in the air? residents of one state are finding out the hard way. we're going to explain that coming up next. you can never have too much money but you can have too much jet fuel. ♪ .
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♪ >> spare change time, joined by fox contributor, monica crowley. >> happy to beein the presence
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of a godess. >> signed right to work bills into law banning mandatory union membership. guys, you know, before we have fun, get your reactions. monica, go ahead. >> great news for the state of michigan, the wokers in that state. seven out of the top ten states with the highest unemployment rate in the country are forced union, and those are phenomenal for the state, seeing the growth happening across the border in indiana. that's the growth they. want in michigan. >> when wisconsin did this, further with constricting bargaining rights, 75% of the union members in wisconsin stopped paying their dues. >> that's true. >> we have to check, say, two, three months out after it's the law, how many members of the uaw, how many members of the unions are still paying their dues.
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melissa: although, they say it's the free rider program, the union's in there working, saying if it's free, might as well, can't afford the pay the dues. >> what role does the labor movement today play mmuntain economy? the battles of the 1930s are not the battles of today. melissa: okay. all right, now on to fun, not for everyone. talk about gas problems. this is hard to believe, but a fuel delivery service delivered jet fuel accidently to the new jersey gas station causing cars to stall out. the station shut down to identify which pump it is and clean it out. wow. >> you know, to be honest, i'm surprised it doesn't happen more often. if you put jet fuel in the car, you'd have a jet pack. >> is that it? >> to fly. melissa: now how it works. >> can cause damage to the car. >> water gets into the fuel, and the engines -- water gas mix. melissa: i forgot you were the
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car expert. >> episodes of a jewish mechanic. give credit to the oil distributing company because they got delta right. it was a delta gas station. maybe the order for fuel to go to another airline. melissa: there you go. spare change update. remember this? we'll show it to you. starbuck's 450 dollar steel gift card. look at it on ebay. i can't believe it. people are having $5,000 for the card which only comes with a $400 credit. offers 5,000 of the cards, but they sold out. how is that possible? if you bought one, tweet me why you bought it. >> maybe it's a prestige thing. melissa: it's a starbucks card. >> i'm with you on this. melissa: i'm sorry, i'm sorry, no name calling, but it's a card. >> maybe just sort of making the connection with an mx titanium
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card or something, and there's prestige. >> i'm a dunkin donuts guy, so i'm laughing about this. $5,000, get a used jag on e bay. >> where? >> yeah. >> really? >> one in houston right now. melissa: he watches it all the time, believe him. i thought the $400 worth of coffee was silly, but it sold out. i have a bridge i want to sell you. >> not economically smart. melissa: no. moving on something not pricey, but delicious looking. check this out. it is a bacon cheeseburger perched on a bloody mary. the crew is looking closely. delicious. this garnish has its own garnish of shrimp and sausage. it comes with a beer chaser, and that's only nine bucks. i'm surprised. the owner of the bar in winsconsin says business has gone up, i


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